Hanger, Inc. (HGR): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report

Headquartered in Austin, Texas, Hanger, Inc. HGR provides orthotic and prosthetic (O&P) patient care services in 45 states in the U.S. and the District of Columbia through over 740 patient care centers. Orthotic care comprises custom design, fabrication, and brace and support fit for treatment of musculoskeletal conditions. Prosthetic care deals in custom design, fabrication, and fit of artificial limbs required by patients suffering from loss of a limb at birth, vascular disease, diabetes, cancer, or trauma. The company changed its name from Hanger Orthopedic Group Inc. to Hanger Inc., effective from Jun 2012. Management announced that the previous name was limiting and the name change is part of the company's branding initiative to promote its other businesses other than orthotic and prosthetic (O&P) patient care products.

Reporting Segments

Effective from Jan 2013, the company has realigned its reporting segments into two groups viz, Patient Care and Products and Services.

Patient Care (83.4% of 2013 revenues) segment includes Linkia, which was earlier reported in the "Other" segment. Products and Services (16.6%) segment has been formed by merging the Distribution and Therapeutic Solutions segments to effectively meet end-market demands as well as enhance operating efficiency.

The company, through its subsidiary Linkia LLC, manages an O&P network and develops programs to manage all aspects of O&P patient care for insurance companies. Linkia is a network management company for the orthotics and prosthetics industry. It was established in early 2004 to bridge the gap between payors and O&P practitioners. It is the first managed care organization dedicated solely to the O&P market. Hanger believes that this strategy will help gain market share and rationalize pricing in a highly fragmented market.

Hanger's Therapeutic Solutions division offers services to the O&P market and post-acute rehabilitation market through its subsidiaries, Innovative Neurotronics and Accelerated Care Plus ACP.